Clifford Chance
US Supreme Court Asked to Resolve Circuit Split over the Scope of the False Claims Act
November 3, 2020
The US Supreme Court has been asked to take up a case regarding whether a medical opinion "may be scrutinized and considered 'false'" and a violation of the False Claims Act even if it is not "objectively false."
On September 16, 2020, Care Alternatives filed a petition for writ of certiorari in the US Supreme Court seeking review of the Third Circuit's decision in United States ex rel. Druding v. Care Alternatives, which held that the FCA did not require "objective falsehood." The US Chamber of Commerce and the Pharmaceutical Research and Manufacturers of America have filed an amicus brief supporting Care Alternatives' petition and asking the Supreme Court to take the case.
The Third Circuit's decision created a circuit split regarding the meaning of "false" under the FCA and provides the Supreme Court with an opportunity to resolve a disagreement among lower courts that has far-reaching implications for any individual or organization doing business with the US government. If the Third Circuit's view is upheld, then companies submitting claims to the federal government face a much higher risk of FCA claims based on a difference of professional opinion rather than objective falsity.
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